Greek
Property News 2006
Easier
to live and work in Greece for EU citizens!
(From
ATHENS NEWS, 21.04.2006)
A new European directive, which all member states must have implemented
by 30 April 2006, simplifies the procedures for EU citizens who
wish to live and/or work in a member state other than their own.
This, in effect, removes the need for a resident’s permit
that many countries, including Greece, were requiring from non-Greeks.
A simple registration with the authorities is all that is needed
now and, even that, is left to the discretion of each EU country
whether to implement or not. Greece is expected to adopt this option.
Registration will be free from any charges and it will be a one-off
procedure.
Under the new rules, the only documents required for the registration
certificate to be issued are:
- a valid identity card or passport
- confirmation of engagement from the employer, or a certificate
of employment, or proof of self-employment.
Pensioners may only be required to submit proof of comprehensive
sickness insurance cover and that they have sufficient resources
for themselves and their family, to live in Greece. The directive
explicitly states that member states may not lay down a fixed amount
which they regard as "sufficient resources” and that
they must take into account the personal situation of the person
concerned.
Greece is home to an estimated 50,000 non-Greek EU citizens.
Plans
to improve sea transport for the Dodecanese islands
The Greek Ministry for the Commercial Navy has announced plans to
improve the quality and frequency of scheduled trips between the
islands, including the commission of 6 new ships of 75-100 metres
length.
The Minister also announced that, in cooperation with the Ministry
for Development, they are planning to issue free boat and hydroplane
tickets to permanent residents of small, remote islands like Psara,
Othoni, AntiKythira, etc.
Old Corfu Town to become European Heritage City
An application by the Prefecture of the Ionian islands, received
approval at the 4th programme of Heritage Alive. There were a total
of 238 applications and 41 were approved.
The Heritage Alive programme aims to create a network of historic
cities/towns with the purpose of exchanging knowledge and expertise
on maintaining and improving these special places. It works closely
with UNESCO, the organisation that grants ‘town-monument’
status to artistically and historically important cities.
New
Development Programmes for Lakonia and Mesinia, in the Peloponnese
‘Agrotouristiki’ has been appointed to run the two new
development programmes, in association with the local governments.
The aim of the programmes is to promote the region’s rich
tradition, historic significance and natural beauty, developing
tourist initiatives that are eco-friendly and respect the local
heritage.
Increased
demand for build-able plots in seaside areas of Attica
Despite a decline of interest from developers (due to the new tax
measures), there has been a marked increase of interest from private
individuals, seeking to buy land in seaside areas, close to Athens.
As seaside properties, as second homes, become increasingly expensive
for the average Greek, the trend is to buy land and build permanent
residences in such places and commute to Athens from there.
This, no doubt, will result in new ‘villages’ being
created and prices for small plots will gradually be driven up.
Significant improvements in roads and infrastructure, coupled with
property price increases within the Athens area, have been the driving
forces behind the new trend.
Athenian buyers’ interest extends all the way to Corinth,
in the Peloponnese, mainly because of the new suburban railway and
the ‘Attiki Odos’ motorway, both of which make commuting
feasible.
Record
number of new properties expected for 2006
 According
to the Greek National Statistical Service, around 136,000 of new
residential properties are expected to come in the Greek market
during 2006. From these, 40,000 will be in Attica.
The
figures are based on the number of building licences issued and
include licences for extensions and renovations.
2005
saw a large increase in applications for building licences, mainly
fuelled by the expected new tax measures on properties. December
2005 figures have not been released yet but they are expected to
show an increase of 300% to the previous month!
 There
are concerns that the large availability of properties for sale
may reduce investment potential of rental properties. Property purchase
prices, however, continue to rise steadily and it is expected that
demand in 2006 will remain high, mainly due to the fact that most
new properties offered for sale benefit from having their licences
obtained prior to 1 January 2006, when the new VAT measure took
effect.
Taxing
times again!
It’s
the time of the year again, for people with assets in Greece to
do their tax returns. Regardless of income, people must submit a
return if:
- they have gross annual rental income of 600 euro or more
- they bought property in Greece, or built their own, in 2005
- if they inherited, or were given as a gift, property assets
- if their main residence has an area of 200m2 or more
- if they own properties, other than their main residence, which
have a total surface of 150 m2 or more
People
owning a property in Greece but residing abroad, must have a local
representative. This could be a nominated accountant. The responsibility
of the tax return, however, remains with the owner.
Any
accompanying papers that are in a language other than Greek, must
be accompanied by a certified translation.
Submitted
expenses must be accompanied by original receipts / invoices.
Greece’s
GTP maintains steady increase
Figures for 2004 show a 7.9% increase over the previous year, 2003,
which in turn had shown an 8.1% increase over 2002. The regions
with the highest contribution to the national GTP were Sterea (central
mainland Greece) and Attica.
Blue
Star ferries win new government contract for the Aegean islands
A
much needed, new ferry route from Pireaus to Paros, Naxos, Heraklia,
Schinousa, Koufonisia, Katapola, Aegiali and back, started on 1
March and will continue until 31 October 2006. The contract is for
a weekly trip for the period plus an additional trip per week from
12 June to 10 September 2006.
Inaugural
trip Patra-Kerkyra (Corfu) by hydroplane
27
March 2006, saw the first flights of Pegasus Aviation between Patra
(Greece’s second largest port after Pireus) and Corfu with
a twice daily service – one in the morning, one in the afternoon.
The seaplanes have capacity for 15 passengers and the trip lasts
approximately one hour. The cost of a single trip is 80 euro.
The minister attending the launch said that the aim is to expand
the hydroplane network to 30-40 crafts, which will cover the needs
of all Greek islands, connecting them to key ports like Pireus,
Patra, Heraklio, Volos, Syros and Rhodes.
‘White
versus Colour’ debate for the Cycladic islands
By Evie Efthimiou, All Greece 4U
Source: TA NEA, December 2005
 Towards
the end of 2005, a decision by the Greek Central Archaeological
Council resulted in strong feelings and extensive debate amongst
archaeologists, architects, artists and the general public in Greece.
The decision was to allow use of colour in new buildings on the
Cycladic island of Santorini.
The decision went against a long tradition of limiting use of colour
in traditional island settlements, to white and blue. Those that
argued in favour of more colour, say that the ‘white’
style is relatively modern, having been introduced in the 1930s,
influenced by the Avant Garde movement and architects like Le Corbusier.
Prior to that, houses in the Cyclades were coloured in ochre yellow,
red earth or cobalt blue. Apparently, the combination of white and
blue was introduced during the dictatorial rule of Metaxas, in a
quest for order and uniformity.
Other experts argue that local aesthetics cannot be ruled by governmental
bodies and that the decision should rest with individuals. There
are, of course, those that strongly oppose the motion of allowing
‘colour’ in the Aegean. One important concern is that
today’s plastic-based paints will look totally wrong on a
traditional house.
I declare a strong preference for the white and blue and I don’t
really care how and when it was introduced. The Aegean islands are
unique in the world with the bright sunlight reflecting on the white
of the houses, making them float in space. Santorini island, in
particular, is probably the most photographed place in Greece. If
something works, leave it alone!
New regulations for building licences
expected to become law this month
 A
proposal by the relevant Greek Ministry aims to regulate the height
of new buildings (fewer floors) throughout the country. If it is
voted in the Parliament, it will come into force three months later,
in June 2006.
At
the same time, a new levy is planned to be introduced, around 0.5-1%
of the estimated cost of the new building. This will be paid by
the owner or developer who applies for the building licence. Funds
will be distributed to local councils to upgrade facilities in planning
departments and to allow them to employ additional personnel. The
aim is to speed up time needed to process applications and to check
for illegally built properties.
The
new proposal also incorporates underground parking areas into the
total building allowance.
Hydroplanes licensed to operate in the Aegean and Ionian
The
privately owned company AirSea Lines has
been given the all clear to start regular schedule flights to many
small islands that, so far, have only been accessible by boat.
The
company, which has been already operating local flights between
Corfu and Paxoi islands, are planning to start shortly 18 new routes
from Athens to Kythira, Naxos, Paros, Karpathos, Sitia and Skiatho.
Also, from Rhodes to Kos, Astipalea and Leros, and from Patra to
Corfu, Ithaki and Lefkada. There are also plans for flights from
Corfu to Aktio, Kefalonia and Zakynthos.
The hydroplanes that can carry 19 passengers each, have a dual operational
system, able to take off and land from both land and water. You
will find more details on the company website: www.airsealines.com
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here).
Building
insurance
All
Greek mortgages have to be accompanied by building insurance. The
type of insurance required, varies among different lenders but the
minimum is cover for fire and earthquake. Insurance premiums are
much lower in Greece than other European countries and the amount
insured equals the re-building cost of the property (it is a good
idea to have it index-linked).
New
property tax measures take effect smoothly
By Evie Efthimiou, All Greece 4U
 In
Greece, VAT has replaced transfer taxes on new properties, as from
1st January 2006. This applies to new building licences issued after
that date and it is not anticipated to have an effect on market
prices before the end of the year, as many developers and private
owners brought forward their projects.
The
VAT at 19% will be applied only the first time a new property is
sold. Thereafter, future transfers of that property will follow
the normal taxation rules. The VAT due will be based on the contract
price which can, as is the norm in Greece, state the government
valuation price rather than the market value of the property. This,
of course, favours the buyer who can potentially save in taxes as
there is still a gap between government prices and market values,
despite recent price reviews.
The
government valuation prices, known as Objectives Values, are reviewed
every few years. The last review took also effect on 1st January
2006 and the next one is anticipated in 2008. In the greater Athens
area, Objective Values increased on average by 30% and in other
areas of the country varied from 20% to 50%.
Despite
the adjustments, the gap of ‘official’ versus ‘market’
prices remain and in some areas, it is reported to be as much as
140%.
New
transport connections make it easier to visit Greece
Flyglobespan,
the rapidly expanding low fares airline that was named Airline of
2005 by BAA Scotland, is now offering direct flight to Athens and
Heraklio, Crete, from Glasgow and to Athens only from London Stansted.
From May 2006, there will be daily flight to Athens and back from
Stansted airport and once a week (Wednesdays) from Glasgow. The
flights to Heraklio are once a week again (Saturdays). The airline
commenced its first flight in April 2002 and now operates 11 aircraft
to a wide range of destinations within Europe and the USA. It flies
from Edinburgh and Glasgow and the new base at London Stansted which
commenced operation in November 2005. You can book flights directly
from the company’s website: www.flyglobespan.com
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here).
GB
Airways, a franchise of British Airways which successfully
launched last year direct scheduled flights from London Gatwick
to Heraklio, Crete, are now adding flights to Heraklio from Manchester
airport. The flights will commence in May 2006 and they will be
twice weekly – Tuesdays and Fridays, until October. At the
same time, they have increased the number of flights to Heraklio
from London, to five times a week – Monday to Friday. In addition,
a new service to the Greek island of Rhodes will operate twice a
week on Wednesdays and Saturdays starting on May 3, until October
28 from Gatwick airport. You can book flights directly from the
company’s website: www.gbairways.com
(link will open in separate window - close it to get back
here).
20 million euro investment in the
Peloponnese
 The
proposed project ‘Roads of Pafsanias’ by ‘Agrotouristiki’
in association with the Peloponnesian District local government,
is aiming to enhance the indrastructure and touristical development
of the area.
The
focus of the project is a 200km long area along the road network
of Ancient Olumpia, Vitina, Tripoli, Nafplio, Epidavro and Korintho,
following the steps of the ancient Greek hero Pafsanias. It involves
the regions of Ilia, Arkadia, Argolida and Korinthia and will offer
visitors organised agrotourism facilities and alternative holidays
that will take into account ‘green’ issues and sustainable
development.
Greek cities race for Formula 1 new track
Several
Greek areas are bidding for the new location of Formula 1 race track,
amongst them Patra and Kalamata in the Peloponnese, Crete and Rhodes.
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